(a) Subject to the requirements of paragraphs (b) and (c) of this section and notwithstanding any other provisions of this part, and where the exemption provided in § 124.16 cannot be implemented because of applicable domestic laws, no approval is needed from the Directorate of Defense Trade Controls (DDTC) for the transfer of unclassified defense articles, which includes technical data (see § 120.6), to or within a foreign business entity, foreign governmental entity, or international organization that is an authorized end-user or consignee (including approved sub-licensees) for those defense articles, including the transfer to dual nationals or third-country nationals who are bona fide regular employees, directly employed by the foreign consignee or end-user. The transfer of defense articles pursuant to this section must take place completely within the physical territory of the country where the end-user is located, where the governmental entity or international organization conducts official business, or where the consignee operates, and be within the scope of an approved export license, other export authorization, or license exemption.

(b) The provisions of § 127.1(b) are applicable to any transfer under this section. As a condition of transferring to foreign person employees described in paragraph (a) of this section any defense article under this provision, any foreign business entity, foreign governmental entity, or international organization, as a “foreign person” within the meaning of § 120.16, that receives a defense article, must have effective procedures to prevent diversion to destinations, entities, or for purposes other than those authorized by the applicable export license or other authorization (e.g., written approval or exemption) in order to comply with the applicable provisions of the Arms Export Control Act and the ITAR.

(c) The end-user or consignee may satisfy the condition in paragraph (b) of this section, prior to transferring defense articles, by requiring:

(1) A security clearance approved by the host nation government for its employees, or

(2) The end-user or consignee to have in place a process to screen its employees and to have executed a Non-Disclosure Agreement that provides assurances that the employee will not transfer any defense articles to persons or entities unless specifically authorized by the consignee or end-user. The end-user or consignee must screen its employees for substantive contacts with restricted or prohibited countries listed in § 126.1. Substantive contacts include regular travel to such countries, recent or continuing contact with agents, brokers, and nationals of such countries, continued demonstrated allegiance to such countries, maintenance of business relationships with persons from such countries, maintenance of a residence in such countries, receiving salary or other continuing monetary compensation from such countries, or acts otherwise indicating a risk of diversion. Although nationality does not, in and of itself, prohibit access to defense articles, an employee who has substantive contacts with persons from countries listed in § 126.1(a) shall be presumed to raise a risk of diversion, unless DDTC determines otherwise. End-users and consignees must maintain a technology security/clearance plan that includes procedures for screening employees for such substantive contacts and maintain records of such screening for five years. The technology security/clearance plan and screening records shall be made available to DDTC or its agents for civil and criminal law enforcement purposes upon request.

On May 24, 2013, the Department of State published a rule (78 FR 31444) proposing to amend the International Traffic in Arms Regulations (ITAR) by revising Category XV of the U.S Munitions List (USML) as part of the President's Export Control Reform (ECR) effort. After review of comments to the proposed rule, on May 13, 2014, the Department published an interim final rule that allowed a final comment period until June 27, 2014. The Department is now making final the interim final rule and correcting the interim final rule that appeared in the Federal Register of May 13, 2014.

79 FR 66615 - Amendment to the International Traffic in Arms Regulations: Policy on Exports to Vietnam

In an effort to streamline, simplify and clarify the recent revisions to the International Traffic in Arms Regulations (ITAR) made pursuant to the President's Export Control Reform (ECR) initiative, the Department of State is amending the ITAR as part of the Department of State's retrospective plan under Executive Order 13563 completed on August 17, 2011.

The Department of State is amending the International Traffic in Arms Regulations (ITAR) to update the defense trade policy regarding the Central African Republic to reflect the most recent resolution adopted by the United Nations Security Council.

2014-06-27; vol. 79 # 124 - Friday, June 27, 2014

79 FR 36393 - Amendment to the International Traffic in Arms Regulations: Third Rule Implementing Export Control Reform; Correction

The Department of State is correcting a final rule that appeared in the Federal Register of January 2, 2014 (79 FR 34). The final rule amended the International Traffic in Arms Regulations (ITAR) as part of the President's Export Control Reform (ECR) effort.

2014-04-17; vol. 79 # 74 - Thursday, April 17, 2014

79 FR 21616 - Amendment to the International Traffic in Arms Regulations: Changes to Authorized Officials and the UK Defense Trade Treaty Exemption; Correction of Errors in Lebanon Policy and Violations; and Adoption of Recent Amendments as Final; Correction

The Department of State is amending the International Traffic in Arms Regulations (ITAR) to provide the defense trade policy regarding the Central African Republic to reflect certain resolutions adopted by the United Nations Security Council.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

On May 24, 2013, the Department of State published a rule (78 FR 31444) proposing to amend the International Traffic in Arms Regulations (ITAR) by revising Category XV of the U.S Munitions List (USML) as part of the President's Export Control Reform (ECR) effort. After review of comments to the proposed rule, on May 13, 2014, the Department published an interim final rule that allowed a final comment period until June 27, 2014. The Department is now making final the interim final rule and correcting the interim final rule that appeared in the Federal Register of May 13, 2014.

79 FR 66615 - Amendment to the International Traffic in Arms Regulations: Policy on Exports to Vietnam

In an effort to streamline, simplify and clarify the recent revisions to the International Traffic in Arms Regulations (ITAR) made pursuant to the President's Export Control Reform (ECR) initiative, the Department of State is amending the ITAR as part of the Department of State's retrospective plan under Executive Order 13563 completed on August 17, 2011.

The Department of State is amending the International Traffic in Arms Regulations (ITAR) to update the defense trade policy regarding the Central African Republic to reflect the most recent resolution adopted by the United Nations Security Council.

2014-06-27; vol. 79 # 124 - Friday, June 27, 2014

79 FR 36393 - Amendment to the International Traffic in Arms Regulations: Third Rule Implementing Export Control Reform; Correction

The Department of State is correcting a final rule that appeared in the Federal Register of January 2, 2014 (79 FR 34). The final rule amended the International Traffic in Arms Regulations (ITAR) as part of the President's Export Control Reform (ECR) effort.

2014-04-17; vol. 79 # 74 - Thursday, April 17, 2014

79 FR 21616 - Amendment to the International Traffic in Arms Regulations: Changes to Authorized Officials and the UK Defense Trade Treaty Exemption; Correction of Errors in Lebanon Policy and Violations; and Adoption of Recent Amendments as Final; Correction

The Department of State is amending the International Traffic in Arms Regulations (ITAR) to provide the defense trade policy regarding the Central African Republic to reflect certain resolutions adopted by the United Nations Security Council.